Stock market today: Wall Street rallies as economy keeps growing and profits keep rising

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Stocks are rallying Thursday following a strong profit report from Facebook's parent company and the latest signals that the economy continues to defy predictions for a recession.

The S&P 500 was 0.9% higher in early trading, close to its highest level in nearly 16 months. The Dow Jones Industrial Average was up 84 points, or 0.2%, at 35,604, as of 9:40 a.m. Eastern time, and on track for a 14th straight gain. The Nasdaq composite, meanwhile, was leading the market with a gain of 1.6% following a strong profit report from Meta Platforms.

In the bond market, Treasury yields were rising after a wave of reports indicated the economy is in stronger shape than expected. Another report, meanwhile, said that fewer workers applied for jobless benefits last week. It's the latest indication the job market remains remarkably solid, while another report said orders for long-lasting manufactured goods strengthened more than expected last month.

The Federal Reserve on Wednesday raised its federal funds rate to its highest level in more than two decades in hopes of dragging inflation lower. High rates work by bluntly slowing the entire economy and hurting prices for stocks and other investments. After zooming higher from virtually zero early last year, the sudden shock higher in interest rates has had investors on a long watch for a potential recession.

 

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